McGraw files suit against Calif. loan modification co.

By Bryan Cohen | Jul 18, 2011

CHARLESTON -– West Virginia Attorney General Darrell McGraw's office has taken action against a California-based company for alleged fraudulent loan modification claims.

McGraw's Consumer Protection Division has filed a petition to enforce a subpoena against National Relief Group for allegedly defrauding a Glen, W.Va., homeowner by misrepresenting that it would obtain a mortgage loan modification and illegally charging advance fees for the service.

The Clay County homeowner contacted National Relief Group seeking help with a mortgage loan modification. The company allegedly told the homeowner that he had been pre-approved for a modification and that advance payment was required. The consumer paid up front for the promised loan modification and the company allegedly failed secure any relief for the homeowner. The consumer eventually lost his home to foreclosure.

Under West Virginia law, businesses cannot charge advance fees to consumers for these loan modifications.

"West Virginia consumers who need help in obtaining loan modifications should be aware there are free resources available," McGraw said. "And they should never pay fees for loan modification services in advance."

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